Pag-IBIG Fund made home financing more affordable for members as it lowered the interest rates on housing loans, top executives said Tuesday.
“We are keenly aware of the need to provide affordable housing to our members who dream of having their own homes. With Pag-IBIG Fund’s strong performance and robust fiscal standing, we are happy to announce that we have reduced the interest rates on our housing loan, making homeownership even more attainable for all Filipino workers,” said Secretary Jose Rizalino Acuzar of the Department of Human Settlements and Urban Development and head of the 11-member Pag-IBIG Fund board of trustees.
“This is in line with the directive of President Ferdinand Marcos Jr. to address the country’s housing backlog and help our fellow Filipinos gain better and dignified lives under the Pambansang Pabahay para sa Pilipino Housing or 4PH Program,” said Acuzar.
Under the new rates, the Pag-IBIG Housing Loan now carries a lower interest of 6.25 percent per annum under a three-year repricing period from the previous 6.375 percent.
Interest rates for the 5, 10, 15, 20, 25 and 30-year repricing periods were also reduced to 6.5 percent from 6.625 percent, 7.125 percent from 7.375 percent, 7.75 percent from 8.00 percent, 8.50 percent from 8.625 percent, 9.125 percent from 9.375 percent and 9.75 percent from 10.00 percent, respectively. The new rates came to effect on July 1.
Meanwhile, the agency’s home loan rate under its 1-year repricing period remains at 5.75 percent per annum, while its special interest rate for home loans of minimum-wage earners under its Affordable Housing Program remains at 3 percent per annum, the lowest in the market.
Pag-IBIG Fund chief executive Marilene Acosta said the agency was able to reduce its home loan rates due to its strong fiscal standing, record-high collections and high performing loans ratio.
“We at Pag-IBIG Fund take to heart our responsibility to provide our members with affordable home financing. With our performing loans ratio at a high 92.53 percent and collections from both membership savings and loan payments at a record-high, we are able to effectively fund the high demand for our home loans without the need to borrow from the market,” Acosta said.
“As a result, we were able to reduce the interest rates on our housing loan, despite the upward market trend. This is truly Lingkod Pag-IBIG, Tapat na Serbisyo Mula Puso, at work,” Acosta said.